Hi folks,
I'm a 2nd dan karate instructor aspiring to open a branch studio of the school where I currently teach and train. I've heard 2 common pieces of advice across several discussion boards about starting up a studio:
1) start small by renting a room per hour in say a school, gym, or church to build up numbers before signing a lease for dedicated store space. This totally makes sense from a cash flow perspective - paying for capacity you're not in position to use is just burning through savings.
2) the most cost-effective way to draw in more clientele is location conducive to foot traffic with compelling signage. Ideally next to an anchor like a supermarket or bookstore
Unfortunately these individually valid bits of advice seem to contradict one another, since a rented room in a school/gym/church limits you on both foot traffic and signage.
One method I've heard of squaring that circle is where the studio has a back room or attic space where the instructor actually lives in order to save on rent. I wouldn't want to do this long term, but could imagine doing it for the first year or so of operations while the business is finding its legs and getting enrollment numbers up.
Can anyone comment on the concerns with regards to legality, logistics, ethics, and perception in such an arrangement? Anecdotes of both successful and failed instances, and what were decisive (and perhaps unforeseen) factors would be great.
Thanks!
-Dave
PS: I'm mindful of the fact that, given the recent bankruptcy of Boy Scouts of America, there is an added need for vigilance against any form of impropriety where kids are involved. The space will be marked Private, remain locked during all business hours, and accessible to only myself.